Correlation Between Nuveen Nwq and Lsv Value

Can any of the company-specific risk be diversified away by investing in both Nuveen Nwq and Lsv Value at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nuveen Nwq and Lsv Value into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nuveen Nwq Small Cap and Lsv Value Equity, you can compare the effects of market volatilities on Nuveen Nwq and Lsv Value and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nuveen Nwq with a short position of Lsv Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Nwq and Lsv Value.

Diversification Opportunities for Nuveen Nwq and Lsv Value

0.91

Correlation Coefficient

Nuveen Nwq  Lsv Value

Almost no diversification

The 3 months correlation between Nuveen and Lsv is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Nwq Small Cap and Lsv Value Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Value Equity and Nuveen Nwq is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nuveen Nwq Small Cap are associated (or correlated) with Lsv Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Value Equity has no effect on the direction of Nuveen Nwq i.e., Nuveen Nwq and Lsv Value go up and down completely randomly.

Pair Corralation between Nuveen Nwq and Lsv Value

Assuming the 90 days horizon Nuveen Nwq Small Cap is expected to under-perform the Lsv Value. In addition to that, Nuveen Nwq is 3.35 times more volatile than Lsv Value Equity. It trades about -0.29 of its total potential returns per unit of risk. Lsv Value Equity is currently generating about -0.36 per unit of volatility. If you would invest  2,956  in Lsv Value Equity on October 11, 2024 and sell it today you would lose (315.00) from holding Lsv Value Equity or give up 10.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Nuveen Nwq Small Cap  vs.  Lsv Value Equity

Nuveen Nwq Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Nwq Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Lsv Value Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lsv Value Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Nuveen Nwq and Lsv Value

The main advantage of trading using opposite Nuveen Nwq and Lsv Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Nwq position performs unexpectedly, Lsv Value can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lsv Value will offset losses from the drop in Lsv Value's long position.

The idea behind Nuveen Nwq Small Cap and Lsv Value Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..